Home Buyers Ultimately Pay For Planning Delays: UDIA
Critics of the Victorian Government plan to expedite cases through the Victorian Civil and Administrative Appeals Tribunal (VCAT) were attacking housing affordability and employment opportunities of thousands of Victorians, the Urban Development Industry of Australia warned today.
According to the UDIA, project delays through councils being unable to make decisions or process applications because of workload can cost tens of thousands a month which is ultimately added to the cost of the block of land.
Tony De Domenico, Executive Director of the UDIA (Victoria) said, “the proposal that allowed developers proposing residential projects worth more than $10 million or commercial projects worth more than $5 million to pay $3000, plus a daily hearing fee of $3115, to get their hearing on to the VCAT major case list was nothing new.”
“The concept exists in the legal system in the commercial court area of Victoria, it has existed before with the previous Labor Government at VCAT.”
”The implementation of a developer paid scheme meant that the Victorian taxpayer was not funding the system, leaving taxpayer funds to be used for other budget demands such as hospitals, education, public housing or aged care,” he said.
The development industry in Victoria employs directly and indirectly 200,000 people and is one of the major cornerstones of the Victorian economy.
According to Mr De Domenico,”the development industry is supportive of the re-instatement of the VCAT Major Case List, especially in the current economic climate, where it is important to cut costs of bringing land to market .”